Per Curiam
The Indiana Supreme Court Disciplinary Commission and the respondent agree that the respondent
in this lawyer disciplinary proceeding committed professional misconduct in his handling of matters
relating to his firms trust account. The parties further agree that the
appropriate sanction for that misconduct is a private reprimand. We agree and,
therefore, accept the parties agreed resolution. Here we recount the facts and
circumstances of this case to illustrate the importance of diligent attention to the
details of maintaining attorney trust accounts.
The respondent is a lawyer in good standing whose law firm maintained a
client trust account at a financial institution. The respondents law partner allegedly
created overdrafts in that account. In violation of Ind. Admission and Discipline
Rule 23(29) and the
Indiana Supreme Court Disciplinary Commission Rules Governing Attorney Trust
Account Overdraft Reporting, neither the respondent nor his partner had notified the bank
that the account was a lawyer trust account subject to the reporting of
overdrafts to the Disciplinary Commission.
See footnote
The agreement does not inform us further
about the respondents efforts or lack thereof to insure that the firm complied
with the applicable rules. The parties agree, however, that he violatedAdmis.Disc.Rule
23(29), Rule 4(A) of the Rules Governing Attorney Trust Account Overdraft Reporting, and
Ind. Professional Conduct Rule 5.1(a).
See footnote
Not being aware that the account
was a client trust account, the bank did not report the overdrafts to
the Commission as required by Rule 4(A). The Commission independently learned of
the overdrafts while investigating a complaint filed against the respondents partner.
Attorneys are required to deposit all funds held in trust in accounts clearly
identified as trust or escrow accounts, and shall inform the depository institution of
the purpose and identity of the accounts. Funds held in trust include
funds held in any fiduciary capacity in connection with a representation, whether as
trustee, agent, guardian, executor or otherwise. Attorneys shall maintain trust accounts only
in financial institutions that are approved by the Disciplinary Commission. Admis.Disc.R. 23(29)(a)(1);
Rule 2,
Indiana Supreme Court Disciplinary Commission Rules Governing Attorney Trust Account Overdraft
Reporting. Every attorney must notify each financial institution in which the attorney,
or the law firm for which the attorney works, maintains any trust account
that the account is subject to the provisions of overdraft reporting. Rule
4, Indiana Supreme Court Disciplinary Commission Rules Governing Attorney Trust Account Overdraft Reporting.
Such notice is accomplished by the filing of a form attached as
Exhibit B to the Indiana Supreme Court Disciplinary Commission Rules Governing Attorney Trust
Account Overdraft Reporting. Such notice is to be provided contemporaneously with the
opening of any trust account opened thereafter. Id. For each trust
account, a lawyer or law firm shall maintain a copy of each such
notice throughout the period of time that the account is open and for
a period of five years following closure of the account. Id.
The duty to notify the financial institution that the account is a lawyer
trust account subject to overdraft reporting is incumbent on all members of a
firm, although that duty need be fulfilled by only one. Rule 4(B),
Indiana Supreme Court Disciplinary Commission Rules Governing Attorney Trust Account Overdraft Reporting.
Thus, all attorneys in a firm which has a trust account in
a financial institution may be subject to professional misconduct charges where the financial
institution is not notified in the manner prescribed in the applicable rules.
Although the respondents failure to comply with the notification provisions delayed discovery of
irregularities in his firms trust account, the parties identify no improper motive on
the respondents part. That persuades us that a private reprimand is appropriate
in this instance. Accordingly, the agreement submitted by the respondent and Commission
to resolve this case will be accepted by separate order, and the respondent
will be privately reprimanded.

(1) Attorneys shall deposit all funds held in trust in accounts clearly
identified as trust or escrow accounts, referred to herein as trust
accounts and shall inform the depository institution of the purpose and
identity of the accounts. . . .

Every attorney shall notify each financial institution in which he or
she maintains any trust account, as defined above, that the account
is subject to the provisions of overdraft reporting by submitting a notice
in the form attached as Exhibit B for each such account to the
financial
institution in which the account is maintained. . . .

In the case of a law firm that maintains one or more trust
accounts in the name of the firm, only one notice from a member
of the firm need be provided for each trust account. However, every
member of the firm is responsible for insuring that notice of each firm
trust account is given to each financial institution wherein an account is maintained.

(a) A partner in a law firm shall make reasonable efforts to ensure
that the
firm has in effect measure giving reasonable assurance that all lawyers in the
firm conform to the Rules of Professional Conduct.